SCHD’s Rules Sold Broadcom in March 2024. The Stock Is Up About 183% Since, and SCHD Holders Missed the Run

Quick Read

• SCHD’s yield-screen rule forced Broadcom out in March 2024, and AVGO surged roughly 183% afterward. That gain was one SCHD holders missed entirely.

• A rising share price shrinks dividend yield, which can trigger automatic removal even when a company’s business and dividend are both growing.

• SCHD still gained 39% over the same window, and the same yield discipline that missed Broadcom also shields holders from unsustainable high-yield traps.

• Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)

If you own the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) for income, you probably trust its rules more than any stock picker. In March 2024, those rules dropped Broadcom (NASDAQ:AVGO) from the fund’s index. From its March 15, 2024 close to its September 28, 2026 close, Broadcom’s share price rose about 183%. SCHD holders owned none of that run.

…